Policy Announcements under Viksit Bharat FY 2026-27

by Anupam Shukla

Last Updated: 02 February, 2026

8 min read

Policy Announcements under Viksit Bharat FY 2026-27

Table Of Contents

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In the Viksit Bharat Budget 2026, the government has clearly indicated that the focus has shifted from immediate relief to policy, investment, and future preparedness. The Rs 12.2 lakh crore capital expenditure, 7 high-speed rail corridors, a Rs 10,000 crore fund for MSMEs, Semiconductor Mission 2.0, BioPharma Shakti, and customs duty exemptions on 17 cancer drugs all these announcements are significant steps towards strengthening India's growth, manufacturing, and healthcare sectors.

What Does “Viksit Bharat” Mean in Policy Terms?

Viksit Bharat (Developed India) is not just a slogan, but a clear policy direction evident in Budget 2026. In this budget, the government has emphasized capacity building over short-term relief, aiming to ensure the country's economy remains strong in the long run.

Beyond Immediate Relief: A Vision for Sustainable Development :

Budget 2026 did not introduce any changes to the income tax slabs, indicating that the government is currently prioritizing investment, infrastructure, and manufacturing over increasing consumption. The capital expenditure of Rs 12.2 lakh crore, the Semiconductor Mission 2.0, and schemes like Bio-Pharma Shakti reflect this approach.

Three Guiding Pillars (Kartavya) of the Budget

The government has framed this budget based on three clear visions:

Growth Acceleration: Accelerating economic growth by increasing productivity, for which significant expenditure has been allocated to infrastructure, railways, and industrial corridors.
Capability Building: Enhancing the capabilities of people, industries, and MSMEs. The Rs 10,000 crore MSME Growth Fund, new textile parks, and skill development initiatives are part of this effort.
Inclusive Access: Ensuring that the benefits of development reach every region and segment of society, whether it's affordable cancer medicines, Ayurvedic AIIMS (All India Institute of Medical Sciences), or the development of Tier-2 and Tier-3 cities.

Budget 2026 – Policy Announcements

Policy / Sector	Budget 2026 announced
Income Tax	There are no changes to the income tax slabs.
Healthcare	Customs duty has been completely waived on 17 cancer medicines.
Ayurveda	Three new Ayurvedic AIIMS will be established in the country.
Railways – Passenger	Seven high-speed rail corridors will be developed.
Railways – Freight train	New freight corridor from Dankuni in West Bengal
Infrastructure (Capex)	Capital expenditure of Rs 12.2 lakh crore for FY 2026-27.
Rare earth minerals	Rare earth corridor in Kerala, Tamil Nadu, Odisha, and Andhra Pradesh
Textile Sector	Large and mega textile parks will be built in the country.
Pharma sector	'Bio-Pharma Shakti' scheme with an investment of Rs 10,000 crore.
Bio-Pharma	Under the Bio-Pharma Shakti initiative, 3 new institutions will be established.
Semiconductor	India Semiconductor Mission (ISM) 2.0 launched
Electronics	The budget for electronics manufacturing is Rs 40,000 crore.
MSME	Rs 10,000 crore MSME Growth Fund
Manufacturing Focus	Increasing production capacity in strategic and essential sectors.
Old industries	Revitalization of old industrial areas
Infrastructure Focus	Strengthening roads, railways, and logistics.
Urban development	Developing cities as trade and economic centers.
Economic security	Emphasis on long-term economic stability and security

Infrastructure Policies: Building the Backbone of Viksit Bharat

Record Public Capital Expenditure :

The Finance Minister, prioritizing infrastructure in the Budget 2026-27, announced an increase in public capital expenditure (capex) to Rs 12.2 lakh crore. This is higher than the Rs 11.2 lakh crore allocated in the previous financial year. The government's focus will remain on continuing infrastructure development in major cities, as well as in Tier-2 and Tier-3 cities. Under this initiative, City Economic Regions (CERs) will be launched, with a provision of Rs 5,000 crore per region for the next 5 years.

Connectivity as the Foundation of Growth :

In Budget 2026, connectivity has been recognized as a crucial driver of economic growth. The following announcements were made:

7 high-speed rail corridors will be developed, presented as “Growth Connectors.”
A new dedicated freight corridor from east to west, connecting Dankuni in West Bengal to Surat.
A Coastal Cargo Promotion Scheme, aiming to increase the share of inland waterways and coastal shipping from 6% to 12% (by 2047).

Other Key Infrastructure-Related Measures :

Establishment of an Infrastructure Risk Guarantee Fund to provide partial credit guarantees to lenders.
Provision for dedicated REITs for better utilization of real estate assets of CPSEs (Central Public Sector Enterprises).
Infrastructure development will continue in Tier-2 and Tier-3 cities with a population of over 5 lakh.

Manufacturing & Strategic Sectors: Reducing Import Dependence

Semiconductor and Electronics Sector :

The Budget 2026 announced the launch of the India Semiconductor Mission (ISM) 2.0. This mission aims to strengthen the semiconductor ecosystem in the country, focusing on chip manufacturing as well as design, equipment, and materials.

The budget allocation for electronics component manufacturing has also been increased to Rs 40,000 crore to promote the domestic production of components for mobile phones and other electronic devices.

Rare Earth and Critical Minerals Policy :

In Budget 2026, the government declared rare earth minerals as strategically important and announced the establishment of dedicated rare earth corridors in Odisha, Kerala, Tamil Nadu, and Andhra Pradesh.

These corridors aim to promote mining, processing, and manufacturing, thereby reducing import dependence in the EV, defense, and clean energy sectors.

Textiles and Traditional Industries :

The Finance Minister stated in the budget speech that the government will establish mega textile parks in a challenge mode to strengthen the textile sector. The Mahatma Gandhi Gram Swaraj initiative was also announced, which aims to provide training, skill development, and improved production facilities to Khadi, handloom, and rural artisans.

Healthcare & Human Capital: Policies That Touch Daily Life

Affordable Healthcare Measures :

The budget speech announced significant relief for cancer patients. It was stated that 17 cancer medicines will now be exempt from basic customs duty. This will reduce the prices of these medicines and make treatment more affordable. In addition, the government announced a customs duty exemption on the private import of medicines and specialized medical foods used in the treatment of rare diseases, providing financial relief to patients suffering from these serious illnesses. To strengthen mental health services, the budget also announced the establishment of NIMHANS-II in 2026. The aim is to improve mental healthcare services and expand treatment facilities in North India.

Biopharma Shakti Mission :

Along with healthcare, the 2026 budget also includes plans to strategically strengthen the pharmaceutical sector. As part of this, the government has announced the 'Bio-Pharma Shakti' mission, which is considered a significant step towards making India a global bio-pharma hub.

Feature	Description
total investment	Rs 10,000 crore (over 5 years)
Focus	Biologics and biosimilars
Target	Research, manufacturing and innovation
Effect	Establishing India as a global biopharmaceutical hub.

Under this mission, three new institutions will be established, which will increase the domestic production of advanced medicines and reduce dependence on imports.

MSMEs & Employment

Rs 10,000 Crore MSME Growth Fund :

The Budget 2026 announced a Rs 10,000 crore MSME Growth Fund. This fund aims to support MSMEs with the potential to scale globally.

Key features of this fund include:

Providing equity support, not just loans
Focusing on creating future champions, not just helping businesses survive
Prioritizing manufacturing, technology, and export-oriented MSMEs
This step is considered crucial in addressing the long-standing capital problem faced by MSMEs.

Compliance and Liquidity Improvements :

The biggest challenges for small businesses have been complex regulations and delayed payments. Budget 2026 directly addresses this problem.

Key improvements:

Corporate Mitras: Corporate Mitras will be established in smaller cities and towns to assist MSMEs with tax, registration, and other compliance requirements at a low cost.
Expansion of TReDS Platform: It will now be mandatory for CPSEs (Central Public Sector Enterprises) to be onboarded onto the TReDS platform, ensuring timely payments to MSMEs and reducing their cash flow problems.

Focus on Women and Youth Entrepreneurship :

Budget 2026 goes beyond limiting job creation to just government jobs and emphasizes promoting entrepreneurship.

SHE (Self-Help Entrepreneur) Stores: SHE Stores will be created for women entrepreneurs, providing them with a direct market for their products. These will be community-owned retail outlets.
Education to Employment Standing Committee: A high-powered committee will be formed to bridge the gap between education and employment, ensuring that skills are directly linked to jobs and businesses.

Agriculture, Rural & Regional Development Policies

Tech-Driven Agriculture: Bharat-VISTAAR:

The 2026 budget announced the launch of a multilingual AI tool for farmers called Bharat-VISTAAR. This platform will integrate agricultural data from Agri-Stack and ICAR with AI to provide personalized advice to farmers. Through this platform, farmers will receive direct information on:

Crop selection
Weather information
Pest and disease control
Timely agricultural decision-making

The aim is to reduce risks in farming and increase productivity, especially for small and marginal farmers.

Crop Diversification & Northeast Focus :

In the 2026 budget, the government has shifted its focus from traditional crops to high-value crops. This includes:

Promoting the production of crops such as cashews, cocoa, and walnuts
Implementing a strategy to connect these crops to the global market

Strengthening Mission Purvodaya for Northeast and Eastern India. This initiative focuses on:

Industrial and tourism infrastructure
Development of the Buddhist Circuit (in states like Andhra Pradesh, Sikkim, Mizoram, and Tripura)
Employment and tourism-based income in rural areas

The direct objective is to reduce regional imbalances and create sustainable income opportunities in villages.

Conclusion

The 2026 budget reflects the government's vision, prioritizing stability, investment, and long-term growth. Instead of major tax reforms, the focus on infrastructure, healthcare, manufacturing, and MSMEs strengthens India's economic foundations. Overall, this budget goes beyond providing immediate relief and presents a balanced and credible roadmap towards a developed India by 2047.